Lyocell in Lenzing Annual Reports (1999)

These are the relevant paragraphs from the Lenzing Annual Report of 1999. Pre-blending lyocell with viscose emerges as a way to tackle some of the processing issues and presumably to introduce some lyocell to textiles at a lower price. The idea seems to have been revived this year as Eurocel(tm) for the nonwovens market.

Dr Haio Harms, Head of Research and Development at Lenzing since 1983...

"It is part of our strategy for success to invest a certain amount of our

resources into medium and long-term targets. Lenzing's research made a

decisive contribution to the company's competitiveness, while competitors

who lacked that farsightedness had to give in to crowding-out competition.

The broad product range, the value-added by spinoff products of the pulp

production, the solutions to pollution-control issues and the ongoing

improvements in efficiency would be impossible without constant efforts.

This also applies to innovations that pay off in the longer run."

Again this year, the top priority regarding Lyocell developments was on optimizing the Lyocell technology. In this connection, we were able to achieve major progress in broadening the primary-material base, in making more efficient use of our plants and in making the quality level more even. On account of efforts to expand the range of types and to make processing and finishing methods easier, we were able to expand our market base. The spectre now ranges from a Lyocell micro fiber to coarse-titer wool types and matted fibers. Special scope was given to further developing the technology used to produce Lyocell fibers with a reduced fibrillation tendency.

Dr Franz Raninger, Member of the Board of Management with Lenzing since 1994...

“Lyocell offers good growth opportunities. However, the traditional technology, based on viscose, still contains further potential for innovation. The numerous product developments at Lenzing in recent years are a clear proof of this point.”

In 1999, Lenzing took another important step in the direction of focussing on high-quality special fibers by developing new fiber blends, consisting of Modal/Lyocell and Viscose/Lyocell that can be used for textile applications.

Innovation: Product Development with Courtaulds Lyocell (1994-1999)

"Courtaulds Lyocell", a cut-price version of Tencel finished to discourage its use in premium apparel applications, was launched at Tech Textil in June 1995 and with it came a proliferation of developments in nonwovens, special papers and industrial textiles.  "HF100", a version intended to be easier to fibrillate in papermaking and hydroentanglement was also launched.  Between 1995 and 1998 over 400 separate developments with these fibres were initiated.  
Some of the key markets and trialists are listed below:

Click here for earlier developments under the Tencel brand.

Abrasives: Backing cloths and papers for belt and disc sanders and polishers: 3M, Sumitomo 3M, English Abrasives and Chemicals Ltd.

Absorbent Wadding: Brannoc Fibres, Edward Hall

Air-laid Papers and Nonwovens: (for absorbent cores, wipes, tissues, filters, separators): United Paper Mills, Metsa Serla, Walkisoft, Laroche, Sofrance, Papeteries Canson & Montgolfier SA, Bernard Dumas SA, Fort James, Duni AB.

Automotive Felts: Borgers GmbH, Vereinigte Wollwarenfabriken GmbH, Fiberduk

Automotive Filters:  Toyo Tokushi, Sommer Alibert GmbH

Automotive Upholstery: Courtaulds Textiles Auto Products

Baby Diapers:  Linostar SpA, Procter and Gamble, Personalidzados

Bandages: Thuasne et Cie

Battery Separators: Nippon Kodoshi, Kuraray, Varta Batterie AG, Papetries de Mauduit

Biocomposites: Institut for Structurmechanik, DLR (German Aerospace R&D)

Belting (Conveyors): Marathon Belting Ltd.,

Building Nonwovens:  Dexter AB

Cabin Air Filters: British Filters Ltd

Calendar Bowl Papers: Buhl GmbH

Carpets:  Arlex

Cigarette Filters:  Papeteries de Mauduit, Filtrona International, Philip Morris, Japan Tobacco, Austria Tabak, Papierfabrik Wattens GmbH, Rothmans International

Cleaning Cloths: Lever GmbH, Textilwerke Emsdetten, Freudenberg Haushaltproduckte KG, Rydals Garn AB, Guldner GmbH, Spontex International, Jean Kraut AG

Coating Bases/Artificial Leather: Syntz, ORV, ORSA, Redbridge International, Sangular, Corexim SRL

Composite Reinforcement: Matsushita Denko, ETH, Tufnol, Owens Corning fibreglass, Coventry University, Les Fils d'A Chromarat et Cie, Moy Nonwovens, LNP Engineering Plastics, Fothergill Engineered Fabrics

Carbonless Paper: Carrs Paper Ltd.,

Currency Paper:  Tumba Bruk, Louisenthal, Thomas de la Rue, Crane, VHP Security

Decorative Felts:  Fytisa

Decorative Papers: Tokushu Paper, Oji Paper

Disposable wipes:   Spontex, J&J, P&G, BFF, Lohmann, Hainan Xinlong, Dupont, Sanwa, PGI-Chicopee, Veratec, Daiwabo Nonwovens, Unicharm, EFI Lahav, J W Suominen, Sage Products Inc. Ahlstrom Lystil OY, Arbora

Disposable Apparel: Dupont, Nisshinbo, PGI Chicopee

Dressings:  Smith and Nephew Medical

Durable Wipes:  Dupont

Duvets and Pillow Fillings:  Trendsetter Home Furnishings

Felts: FIR

Filters:  3M Filtrete bv, 3M UK, Purity Textiles PVT Ltd., Devon Valley Industries, Seitz Filter Werke, Steinbeis-Gessner, Hollingsworth and Vose, Fluid Dynamics, Cuno, Valeo - Division Fils Techniques, Unichem Corp., Schoeller and Hoesch, J C Binzer GmbH, J R Crompton, Ahlstrom Filtration, Memcor Filtertechnik GmbH, Electrolux AB, Alias Technology and Filtration, Technical Fibre Products, Humber Fabrics Ltd, UFI SpA, Lydall Inc., Technical Textiles Lorrach, Whatman Paper, Schleicher and Schuell, Sattler Textilwerke
Fine Papers:  Modo och Domsjo, Curtis Fine Paper 

Flame Retardant Fabrics: Mehler Technishe Textilien, Pincroft Dyeing and Finishing, Dorma, Carrington Career and Workwear, Dale A/S, Albright and Wilson (Proban Provider),Alfredo Grassi spa,

Flock: F H Wrigley, Schwarzwaelder Textil Werke, Fratelli Casati, Le Flockage, Hiva Products, John Peel and Sons

Flushable Wipes:  Ahlstrom Lystil SA

Home furnishings: Dranger Design AB, Kvadrat, Filatura Pettinata Alta Biella srl, CIPA Lin,.

Industrial Fabrics: Lantor UK, Gekatex SA, Perseverance Mills, DMC, Troll Safety, Ten Cate Advanced Textiles, , IPT Group, Casa Moda, K Stormark

Interlinings:  BFF, Freudenberg, Intissel

Knitted Fabrics: Soc. European de la Maille, Guilford Mills, Wykes, Chromarat Textiles, Karl Meyer, Bergham Weaving AB

Loudspeakers:  Tannoy Ltd., Kurt Mueller, Onkyo KK

Mattress Covers: Anallegro, Baekaert Textiles

Medical Fabrics and Papers: J&J, Smith and Nephew, Karl Otto Braun, Barlow Paper, Union Textil de Tourcoing, Arjo Wiggins SA, Molinier Industries, Beiersdorf AG, IPM Textiles, Vernon Carus, 

Military Uniforms: Quartermaster Department of the China Army, UK Ministry of Defence, Natick US Army Soldier Center, Spinnerei Kunz, 

Needlefelts: FILC Menges, Pro Tec GmbH, Sage Products Inc., Fritz Landolt AG, Kahnes and Co., Tharreau SA, Vita Fibres, BWF Textil GmbH, Tefisa SA, Dittrich and Sohne, Flytex Srl, Freudenberg (Weinheim), Freudenberg UK, Borkent Bv, Althoffer

Paintshop and Printing Wipes:  SCA Hygiene Paper

Parchment:  Sibille Dalle

Photobase Paper: Eastman Kodak,  Felix Schoeller, 

Rubber Reinforcement:  Dunlop Ltd, Akerlund & Rausing, Hutchinson SNC

Scrims: Fothergill Crenette Ltd, Chavanoz Industrie

Sewing Threads:  Levi Strauss, American and Efird, Coats (several divisions), Gutermann, Cousin Freres SA, Hilaturas y Tejidos de Levante SA, DMC Fils a Coudre, Empriss Mills, Belgian Sewing Threads, The Israeli Processing Co Ltd, Oxley Threads, Manila Bay Spinning Inc., Fil Man-Made, Vich Industrial, Werneth Ring Mills, Hilatoros Technicos

Shoe Construction: Nike, Western Board, Promocompo LDA, IS Supplies, BUSM/Texon, Service House Lahore

Speciality Paper: Neu Kallis Special Paper, Papierfabric Lahnstein, Fukuda Paper, La Papelera de Besos, Bollore Technologies,  James Cropper, MB Special Paper SA, Arjo Wiggins Appleton

Sponge Reinforcement:  Spontex Espana

Stitchbonding:  Cosmopolitan Textiles, Welbeck Technical Textiles

Tampons: Tambrands, J&J

Tarpaulins:  Borghorster Warpspinnerei

Tenting:  Ten Cate Technical Fabrics

Tea-Bags: Dexter Nonwovens, Miki Tokushu, Taylors of Harrogate, Papeteries de Cascadec

Vacuum Cleaner Bags:  MB Special Paper, Melitta Household Product

Waddings:  Libeltex bv

Workwear:  Carrington Career and Workwear, Klopman International, Weberei Wangi, Ten Cate Protect, Lauffenmuhle Textil GmbH, Boras Watveri AB, Beijing Public Security Bureau, Hironen Co., Taizhou Jitai Worsted Spinning, Boco GmbH, Textil Santanderina, Unit Products AB, Sagatex ASA, Landau Shamash Ltd., Patron Saint,

Wipes:  (see also Disposable Wipes) Lever Espana

Wound Care: Speciality Fibres and Materials, Nimrod, Lantor International, Johnson and Johnson, Bristol Myers Squibb, AM International, Veratec

New non-fibrillating Tencel Variant, A 100, appears at Grimsby (1999)

One of the biggest synthetic fibre manufacturers in the world is Akzo Nobel of the Netherlands. Akzo Nobel plans to split off its fibres business, Acordis, in the second half of 1999. Created as a result of Akzo Nobel's takeover of Courtaulds last year, Acordis has sales of around $12bn and starting operating as a separate business under Akzo Nobel from 1 January 1999. It claims it is the world's largest dedicated fibres production company.

Acordis employs around 19 000 people worldwide and has its headquarters in Derby, UK. 'The Courtaulds and Akzo products are different, but do form a comprehensive range,' Acordis maintains. The main thrust of the integration is in aligning management and organisational styles.

The group has production facilities in Germany, the Netherlands, the UK, the US, Brazil, Italy, Spain and Poland, where it makes synthetic fibres and speciality materials for industrial, textile, medical and hygiene applications.

It has been in loss since the onset of the economic crisis in Asia.

'Our proposals are designed to restore Tencel's profitability while retaining the flexibility to increase rapidly as demand rises,' the company says. Central to this is the flexibility of the new Grimsby plant, which is equipped to produce a new Tencel variant, A100. A100 has surface characteristics which open up a much wider range of end uses. Initial market reaction has been extremely positive. The A100 capability can be retrofitted to the Mobile operation as demand increases.

David Wilkinson, Acordis Director responsible for Tencel, comments: 'Tencel was the first new textile fibre for 30 years when it was launched in 1992, and introduced radically new standards of aesthetics. Until the Asian crisis, demand frequently exceeded our ability to supply. This is a temporary setback. We remain convinced that, the current situation notwithstanding, Tencel is a fibre of exceptional market potential

1st April 1999 Source ICIS

Akzo sells Tencel with Acordis to CVC (1999)

Akzo Nobel has welcomed a bid from UK venture capitalists CVC Capital Partners for its beleaguered fibres business Acordis.  CVC, backed by Acordis' management, has offered E825m ($889m) to acquire a majority stake in the fibres company. Akzo has the option to buy 20%.  Acordis chief executive officer Folkert Blaisse said: 'We back CVC's offer 100%. We trust that the transaction will be completed fast, effectively and efficiently.'

Akzo Nobel chairman Cees van Lede said: 'CVC's proposal fits our stated strategy of establishing Acordis as an independent company with a solid foundation.'

Akzo had previously sought to float or demerge Acordis, although Akzo was working on restructuring the business further before this went ahead (ECN 17 May).

Industry watchers said the price for the business was fair. Akzo can now concentrate on its other, more profitable businesses, while CVC could eventually resell Acordis or float it on the Dutch stock markets.  Mark Sullivan of Chase Manhattan bank, which advised CVC on the deal, said seeing the fibres market cycle through could be tough, but that 'CVC has taken on the challenge'. For Akzo, he said the deal was a 'clean strategic solution'.

Under CVC, Acordis will continue its strategy to build its portfolio of speciality fibres for niche markets to balance slim profits from the cyclical businesses that are undergoing restructuring.

Acordis and Austria's Lenzing have confirmed that the CVC bid does not affect their possible US viscose rayon joint venture, and that discussions continue.

Acordis incorporates the fibres businesses acquired by Akzo from Courtaulds, which have been a drain on Akzo's resources ever since.

16 August 1999 00:00 [Source: ICB]

Azko Nobel signs Acordis sale agreement (1999)

LONDON (CNI)--Dutch group Akzo Nobel said Thursday it has agreed the sale of its Acordis fibres business to a consortium led by CVC Capital partners for Euro825m ($851m).

Venture capital company CVC will have a 64% equity stake, with the Acordis management holding 15%. Akzo Nobel will acquire the remaining 21%.

Acordis, which will retain its existing management under chief executive Folkert Blaisse, also inherits from Akzo Nobel provisions of some Euro225m to meet various obligations including pension fund payments and environmental charges.

Akzo Nobel said Acordis would be a Dutch company and have a two-tier board structure with a supervisory board in which Akzo will have one of the five seats.

Cees van Lede, Akzo Nobel chairman, described completion of the sale negotiations as a major milestone for his group. "Akzo Nobel will enter the next century as a different company - focusing on the dynamics of growing our pharma, coatings and chemicals businesses."

Folkert Blaisse said Acordis will focus on building a solid stand-alone fibres company with high potential for the future.

In August, when the CVC offer was first announced, Blaisse said Acordis planned to achieve a return on sales of at least 8% in the next three to five years by restructuring and focusing on the high growth areas of industrial applications and specialty fibres. In the first quarter this year the return on sales was 1%.

CVC has publicly backed the Acordis management's strategy of growing organically and through add-on acquisitions in core markets. Earlier this year CVC completed the purchase of 75% of Dynoplast, the plastics business of Norway's Dyno Industrier and the acquisition from Shell of a 50% stake in Dutch plastic pipe manufacturer Wavin.

By: Neil Sinclair 18 November 1999 10:11 [Source: ICIS news]

Akzo prepares to float Acordis: Tencel remains depressed (1999)

An improvement in the performance of its industrial and textile fibres operations plus the contribution from Courtaulds helped Akzo's Acordis fibres business boost operating profits by 52% to Dfl 141m. Acordis, which is being prepared for demerger, increased sales by 21% to Dfl 4.3bn of which Courtaulds accounted for Dfl 1bn. Excluding the Courtaulds related sales, however, revenues declined 6% due to divestments. Volumes and average selling prices were flat on 1997.

The group plans to float Acordis in the second half of the year, but was unable to give more precise information about the timing. If the business is floated at the bottom of the fibre market's cycle, shareholders will be pleased but it will be a poor transaction for Akzo, said van Lede. But if it is sold at the top of the cycle, shareholders will be critical, he said. "Whatever we do the timing will never be right."

Akzo explained that high capacity utilisation, cost reduction and improved productivity boosted industrial fibres earnings. A turnaround in the viscose filament business and an improvement in non-wovens boosted textile fibres. However, the Asian crisis hit results from Aramid Products and the cost of introducing new products meant that Membrana's results were down on 1997.

The Tencel fibre business remained depressed because of overcapacity. 

By: Neil Sinclair 22 February 1999 12:15  [Source: ICIS news]

Akzo moves US 'Tencel' to UK; 96 jobs cut (1999)

LONDON (CNI)--Dutch group Akzo Nobel announced Tuesday its fibres subsidiary Acordis is moving production of Tencel to the UK from the US with the loss of 96 jobs.

The move comes in response to the Asian economic crises reducing demand and the company trying to boost profitability.

All production of Tencel is being re-located at Acordis' new plant in Grimsby, England. The original US production facility in Mobile, Alabama is to be mothballed. US production of Tencel is to be suspended shortly but the plant is to be maintained in operational condition.

The change in production location to the more efficient plant will also see 62 job losses among support staff, mostly in the UK, said the company.

Folkert Blaisse, chief executive officer of Acordis, said: "Our proposals are designed to restore Tencel's profitability while retaining the flexibility to increase production as demand rises."

Acordis said there is to be a full consultation with employees affected by the strategic plan and with their representatives. It is also to provide counselling support and facilities to seek new employment.

By: Patrick Reynolds 26 January 1999 18:41 [Source: ICIS news]

Acordis shuts US Tencel plant (1999)

Acordis, the wholly-owned subsidiary of Akzo Nobel, is halting production of Tencel at its 43000 tonne/year Mobile, Alabama, US, plant,focusing operations at its other 42000 tonne/year plant in Grimsby, UK.

The company blames current market conditions for the closure and said the Tencel operations have been making a loss since the start of the Asian crisis. 'Until the Asian crisis, demand frequently exceeded our ability to supply,' said David Wilkinson, Acordis director responsible for Tencel.

Some sources believe Tencel's problem, since its launch in 1992, lies with its relatively high price relative to other fibres.

But Acordis maintains this is a temporary setback. The Mobile plant will be maintained in operational condition so that it can be brought back onstream when demand improves.

Acordis remains committed to Tencel, adding that programmes with major

Tencel Shrinks to Fit (1999)

• Tencel Mobile plant is shut.  
• Doubts about its (Tencel's) future.  
• It's enormous development and patent battle costs resulted in huge cost burden.
• Donald Anderson is quoted:  production difficulties constrained sales even before the Japanese (luxury) market slowdown.
• No possibility of targeting commodity markets.

Acordis' decision to mothball the 43000 tonne/year Tencel plant at Mobile, Alabama, and concentrate production at the newer 42000 tonne/year Grimsby, UK, unit coincides with Lenzing announcing that its 12000 tonne/year Austrian line will under-run throughout 1999 while work proceeds on debottlenecking it to 20 000 tonne/year.

Lyocell, the generic name for the wonder fibre, the development costs of which left Courtaulds defenceless in the face of the Akzo Nobel approach and probably lay behind the recent departure of Lenzing's ceo Heinrich Stepniczka, is not fulfilling its early promise.

'We believe in lyocell,' says Lenzing spokeswoman, Rosemarie Schuller, tacitly admitting the doubts everyone feels about its future.